Leather Pipeline: for bovine leather at least, the “drama” is behind us
The latest Leatherbiz Weekly includes our final Leather Pipeline market intelligence report for 2020. The report offers a review of the eventful and challenging year that is now coming to an end.
Key messages from the report, which is available in full here, include one that says: “We can say that for the bovine sector the drama seems to be behind us.” The “drama” in question is a reference to the upheaval caused by covid-19.
It goes on to explain that, while the first half of 2020 was difficult because of the spread of the first wave of the pandemic and extensive lockdowns, things began to pick up for many in the leather sector, led by growing demand in China.
Chinese tanners consumed large volumes of raw material, which had reached what the report calls “the cheapest price levels ever seen in many parts of the world”. In other parts of the world, large volumes of hides were destroyed or dumped.
These two factors helped bring supply and demand, and raw materials prices, into better balance.
However, according to Leather Pipeline, while the industry continues its efforts to make consumers more aware “that leather is one of the most sustainable materials we have”, it will be price that determines how much leather finished product brands choose to use.
For this reason, it said, leather must remain price-competitive as we move into 2021.
